How is a deposit different from a deposit?

What is a deposit

Deposit – the transfer of money or other valuables for safekeeping to financial institutions on agreed terms.

How is a deposit different from a deposit?

Deposit is a general concept, a financial term that includes both bank deposits of individuals and the transfer of other types of values ​​from legal entities to a bank or depository. The concept of a deposit can be applied exclusively to the transfer of funds by individuals to a bank, but the same action can be called a deposit. The transfer of securities to financial institutions, precious metals, art objects, and other valuables can only be called a deposit.

What are the deposits?

Urgent – the contract specifies a specific period of storage of money or valuables. For the use of money for the period of a term deposit, banks pay customers income in the form of accrued interest. The amount of interest rates depends on the amount, term, and a number of other conditions.

On-demand — funds deposited can be withdrawn by the client at any time. On-demand deposits, the depositor has the right to withdraw money without prior notice to the bank without losing interest, but the interest rate on such deposits is the lowest in the market, now it is about 0.1%.

Types of deposits according to the conditions:

With replenishment – additional investments are allowed on the deposit during the agreed storage period

No replenishment – no additional deposits are allowed on the deposit during the agreed storage period

Expendable — the depositor has the right to withdraw part of the funds until the minimum deposit amount determined by the agreement is reached

Non-expendable – ahead of schedule, you can only claim the entire deposit, which is associated with a loss of interest.

Target – deposits containing, in addition to general, a key condition for issuing money. It is most often used when opening deposits in favor of a third party, for example, when a child reaches a certain age, finish school, etc.

Types of deposits by the form of storage:

Cash deposits – the transfer of money in national (rubles) or foreign currency for storage in financial institutions. Multi-currency deposits are allowed, on which you can simultaneously store and convert (exchange) funds in the currencies of different countries within such a deposit.

Impersonal metal accounts – purchase and storage of savings in gold, silver, platinum, palladium without physical possession of them. When opening, the client transfers to the bank the funds for which the metal is purchased, when closing, the reverse operation occurs – the bank sells the metal and pays the client the proceeds. The profitability of such a deposit is achieved if at the time of sale the metal is more expensive than at the time of purchase. In addition, interest may be charged on deposits in precious metals. Impersonal metal accounts are not insured in the Deposit insurance system.

Metal bars or coins made of precious metals – physical values ​​deposited in the bank in the form of bars or bullion coins can also generate income in the form of interest.

Savings and deposit certificates – security confirming the amount of the deposit made to the bank, and the rights of the depositor (certificate holder) to receive the deposit amount and the interest stipulated in the certificate at the bank that issued the certificate after the expiration of the established period. A savings certificate can only be issued to an individual, and a deposit certificate can only be issued to a legal entity.

A bank (depository) cell is the physical storage of any valuables in a bank safe. Such a deposit does not imply income. The cell can be used as temporary storage of valuables when concluding transactions between two clients – one pawn valuables, and the second receiving them under certain conditions, the implementation of which is controlled by the bank. For example, in purchase and sale transactions, the seller of an apartment gets access to a cell with money only after registration of ownership by the buyer.